QuickBooks For Contractors: 5 Things You Should Know Before Using

Who would Babe Ruth have been without his bat? Or Mark Twain without his fountain pen? What about King Arthur and his sword, Excalibur? Certainly, his story would have ended much differently without that magical piece of steel.

For many small and medium-sized businesses, particularly those within the construction industry, QuickBooks is their Excalibur. Quickbooks, an accounting software, allows construction company owners and contractors to thrive within their field. It’s the missing ingredient that allows them to level-up.

QuickBooks is often lauded for its ease of use. However, there are still some important things all contractors should note before they dive in. To help you decide if this software is right for your business, we compiled a helpful list of five things to know before using QuickBooks.

1. There Are Different Versions Of The Software

One of the reasons QuickBooks is so popular is because they offer multiple versions of their software. While other accounting software may take more of a, “one size fits all” approach, QuickBooks understands that every contractor and business is different.

First, you can choose between an online and desktop version. Which one you choose will be highly dependent on which features you need, as well as your budget. For up-to-date information on which is right for you, check out this helpful article from Fundera, which dives into the advantages of each type.

Here is a brief breakdown of the four types of QuickBooks software you can choose from, including QuickBooks Self-Employed and QuickBooks Mac.

QuickBooks Online (QBO)

QuickBooks Online is the cloud-based version and requires zero software installations. You’ll be able to choose between four different subscriptions: Simple Start, Essentials, Plus, and Advanced. You can access QuickBooks from any computer with an internet connection as long as you have a secure login. In addition, you can have multiple users working simultaneously, never have to backup your file, and have seamless integration with construction management software.

QuickBooks Desktop

With the desktop version, you’ll have to install software onto your computer. Once again, you’ll have three options to choose from: Pro, Premier, Enterprise. Unless you are a large company, then you will likely not be using the Enterprise level. Keep in mind you have to pay per user and you will need to backup the file as well.

QuickBooks Self-Employed

For freelancers, QuickBooks Self-Employed is the route to go. Just like QBO, Self-Employed is cloud-based so as long as you have a computer with an internet connection, you can access the information you need. One of the best features that this version of QuickBooks possesses is the ability to separate business expenses from personal ones. This is a great option for 1099 contractors. So if you’re a sole labor provider, it may be a good fit for you.

QuickBooks Mac

QuickBooks Mac is extremely close to QBO but is a desktop version. So, if you have a Mac but want to avoid a cloud-based software, then QuickBooks Mac is worth checking out. Check out this article for more in-depth information on QuickBooks for Mac. 

2. QuickBooks Allows Access To Multiple People

If you have a team who needs access to your accounting information, QuickBooks allows for access to multiple members. So, while your team or business grows, anyone who needs to enter numbers or check up on accounting information (such as an accountant), can do so.

When it comes to keeping tabs on company accounting, it is essential that everyone can collaborate on financial tasks. Also, you’d be hardpressed to find an accountant or accounting firm who isn’t familiar with QuickBooks. 

3. QuickBooks Allows You To Create Invoices & Quotes

One of the biggest pain in the necks of running a small business is trying to make sure that you get paid on time. Every small business has a horror story about being paid for a job two months after completing the job. While all might be forgiven once that money finally comes, wouldn’t it be nice to ensure that any similar issues like that don’t happen again?

QuickBooks accounting software has a feature that allows you to create invoices and quotes. The invoices look extremely professional to help your business look good. Most importantly, you’ll be able to craft invoices efficiently and email, as well as mail them to your clients and customers.

4. Training is Required

While yes, QuickBooks is easier than other accounting software on the market today, you’ll still need some training. Your business’s accounting is paramount to your success. Whereas with a mistake in marketing may cost you a lead or a sale, an accounting mistake could be much more detrimental to your company going forward. Inaccurate record keeping can result in huge fines.

So, make sure that you take the time to be properly trained-in on how to use QuickBooks. When it comes to accounting, winging it is not an option.

5. QuickBooks Allows You To See Almost All Of Your Business Financials

Using QuickBooks, you can access the following information through the customized reports they supply:

• Banking – You can keep tabs on all your banking transactions, deposits, and withdrawals and search your banking history with ease.
• Budgets & Forecasts – Ensure that your business is staying within the parameters of the project budget.
• Taxes – Taxes can be a real headache. With QuickBooks, your tax information is much easier to understand, and anyone assisting with filing your taxes can have access to the information they need.
• Receivables – Keep track of who still owes you money and how much with ease.
• Employees & Payroll – As your company expands you can better understand how your payroll is looking and where you have room for expansion
• Jobs & Timesheets – Find out who is working where and when and for how long.

If You’re Interested in Learning More About QuickBooks, Contact 24hr Bookkeeper Today

As previously mentioned, we provide QuickBooks Training so that you can confidently navigate your way through the software. We also offer Construction Software Integration and Workflow Advisory Services, and more.

At 24hr Bookkeeper, we are passionate about helping small and medium-sized businesses succeed. If you need assistance with your accounting, then reach out to us today by calling (218) 885-3100 or send us a message and fill out this brief form on our website. We look forward to hearing from you soon!